Under Fire

THE WORST MAY LIE AHEAD for the embattled stocks of defense companies. Although the shares have fallen sharply over the past year, technical analysis shows that many have yet to find downside support. Most of the shares will drop further in the months ahead -- and in some cases severely.

This view, of course, flies in the face of a compelling bullish argument: War requires weapons. In fact, some analysts believe that the industry's fundamentals are improving (See "Forward, March," March 24). But a close reading of...

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